AZUL closes higher for the 6th day in a row
Azul S.A. American Depositary Shares (AZUL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, AZUL finished Thursday at 12.33 gaining $0.84 (7.31%) on high volume, strongly outperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AZUL as at Mar 26, 2020):
Thursday's trading range has been $2.59 (21.18%), that's slightly below the last trading month's daily average range of $2.70. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AZUL.
Three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on Monday, AZUL gained 23.64% on the following trading day.
Prices are trading close to the key technical support level at 10.57 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for Azul S. A.. Out of 10 times, AZUL closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 70.00% with an average market move of -11.56%.